Local authority leaders were today drawing up a final pay offer to firefighters amid signs that the union has shifted its position in a bid to clinch a deal and end the long-running dispute.

Local authority leaders were today drawing up a final pay offer to firefighters amid signs that the union has shifted its position in a bid to clinch a deal and end the long-running dispute.

The Fire Brigades' Union (FBU) might be prepared to end its overtime ban and agree new shift patterns in return for a "significant" pay rise.

The union has also signalled it could sign up to the "strategic heart" of the controversial Bain Review of the fire service which it boycotted and angrily attacked as "irrelevant".

Intensive negotiations between the union and employers, held at the conciliation service Acas, ended last night and the dispute now enters a crucial phase.

Union leader Andy Gilchrist is expecting a pay offer to be tabled tomorrow which will be considered by FBU brigade representatives on Friday before a national conference later this month to decide whether to hold a fresh ballot.

Firefighters staged a series of strikes last year but the industrial action was suspended to allow the talks to continue.

It is understood that the employers have suggested a new wage "spine" to extend the range of pay rates available to firefighters.

The two sides have discussed moving the fire service away from its traditional role to place emphasis on giving advice on community fire safety and educating children of the dangers of starting fires.

Union leaders are understood to be willing to consider a reduction in the number of firefighters but only in two or three years after the changes have been completed and if there is no threat to safety or fire cover.

Details of the union's shift were first reported by PA News at the weekend and confirmed last night as the Acas talks ended.

"The union is up for significant changes in return for a significant pay offer which will have to include a pay formula," said an FBU source.

"There is a deal to be done if the price is right."

The union has already rejected an 11 per cent offer over two years and it is likely that the new deal will be for three years.

The two sides were close to agreeing a 16 per cent pay rise over two years last November before the Government intervened.

FBU leaders are understood to have told the employers they accept some of the recommendations in the Bain Report about the future role of the fire service in preventing incidents and acknowledging the increased role of firefighters in rescuing people trapped in road accidents and dealing with other incidents such as chemical spillages.

"It will be a shift away from the old type of fire brigade to a new type of public service that the Governments says it wants," said the union source.

The FBU hopes its stance will help the Government agree that its modernisation agenda has been met.